As the administration and Congress seek additional paths to increase production and grow revenues for the American taxpayer through royalties, extending the life of aging wells and infrastructure through royalty relief will result in additional contributions to the U.S. treasury, sustain and create offshore drilling jobs, and continue production of oil and gas critical to our nation’s energy security.

Royalty Relief Means New Capital Investment, New Jobs, and New Development

Extending the Life of GOM Shelf Infrastructure Enhances a Valuable Resource

Once infrastructure is removed, federal government revenue through royalties is left stranded, along with mineral reserves

If we allow areas to be abandoned, they will not see the benefit of new technology that will uncover new opportunities from existing wells and through existing production

More Total Barrels Produced Leads Increased Taxes & Royalties

Increased recovery of otherwise stranded resources will continue to quantifiably benefit the taxpayer

By extending the life of existing wells, the U.S. Treasury will realize increased royalties from new wells drilled off of existing structures

By extending the life of wells and additional wells to-be-discovered, the U.S. Treasury will experience additional, higher taxes from corporate and payroll sources from oil and oilfield service companies operating the platforms

Construction and drilling personnel stay on the job, finding and developing new wells

Extension of Infrastructure Life Raises the Value of the GOM Shelf to the Taxpayer and Local Jobs

The Bottom Line Benefits of Royalty Relief:

Operators – improved drilling economics to attract capital investment

Service Companies – significant increase in employment from platform life and drilling, with workers staying on the job and companies creating new jobs

Government – increased recovery of stranded royalties and preservation of infrastructure life for future technology and higher prices, in addition to continuance of corporate and payroll taxes that accrue to the U.S. government